Hi Marcelo. Dividends are usually paid twice a year - an interim and final. the dates depend on the company. Earnings and dividends are different - dividends are paid out of earnings so maybe quite a bit lower. Yes a share buyback will boost EPS so keep an eye on announcements! Tim.
In theory they should be able to see the reduction in outstanding shares but in practice many investors take the EPS number as read without investigating it much. The directors know this, which is one of the reasons they like buybacks as a way of boosting EPS. Tim.
O love this video I am taking intermidiate accounting and I had to refresh my mind on EPS and were going to cover deluted EPS and this video is a HUGE help in refreshment and whats upcoming in my cours Thank you so much! Your explanation was very clear very clean.
Hi Tim, I've taken a keen interest in your video's & I'm studying them like I would a lecture at university! Just a quick question on this video, you mention that one of the problems with the EPS figure is the possibility of share buy-backs; which cause the number of shares to fall, boosting the EPS figure. However if a company is buying back shares, won't this cause the PAT figure to fall - as funds to purchase these shares would be taken from profits? Thanks
I think the actual equation is = net income - preferred dividends / weighted average shares outstanding (WASO) WASO takes into account: new stock issues, buy backs, stock split or reverse split etc. I just learned this today while studying about the Stock Market so I could be wrong. Hope that answer answered your question, if not let me know what was wrong since I'm curious too.
Hey Tim, I was going through the quarterly report of a company and found basic and diluted EPS to be the same. What does it infer? Does this mean no further plans or are they obliged to not dilute shares?
Can a company take the money from its shareholders and instead of investing it into the company, buy back shares?? Maybe I am misunderstanding. This is discussed about 7 minutes in. If anyone understands this I would appreciate the clarification!
What does 10 cents/pence per share even mean tho? The shares are undervalued by 10p? Why do u need this for profitability if u can just look at their revenue? I want to know what the # itself is telling me.
***** it means that if the shares were sold in an open market then they the shares would achieve 10 pence per share. It has nothing to do with over or under valuation in its simplest form as shown in this video. Hope this helps.
By simply buying back their own shares, management can boost EPS without necessarily becoming financially stronger. It can often be used to mask other problems within the company.
Tim, this is incredible. You are the number one finance/market teacher in the world.
Hi Marcelo. Dividends are usually paid twice a year - an interim and final. the dates depend on the company. Earnings and dividends are different - dividends are paid out of earnings so maybe quite a bit lower. Yes a share buyback will boost EPS so keep an eye on announcements! Tim.
In theory they should be able to see the reduction in outstanding shares but in practice many investors take the EPS number as read without investigating it much. The directors know this, which is one of the reasons they like buybacks as a way of boosting EPS. Tim.
O love this video I am taking intermidiate accounting and I had to refresh my mind on EPS and were going to cover deluted EPS and this video is a HUGE help in refreshment and whats upcoming in my cours Thank you so much! Your explanation was very clear very clean.
finally someone get these 2 terms bound. Thank you, Tim!
Excellent presentation. Your videos are very helpful.
Thanks for such detailed yet simple explanation.
i love your accent. Your video also made the EPS concept a lot easier for me to understand. Awesome video
First thing I said when he started talking. lol. His accent. Even though I've heard this accent before, for some reason his stood out. 😂
Gosh, this explanation is so beautiful. Thank you
Hi Tim,
I've taken a keen interest in your video's & I'm studying them like I would a lecture at university! Just a quick question on this video, you mention that one of the problems with the EPS figure is the possibility of share buy-backs; which cause the number of shares to fall, boosting the EPS figure. However if a company is buying back shares, won't this cause the PAT figure to fall - as funds to purchase these shares would be taken from profits?
Thanks
I think the actual equation is = net income - preferred dividends / weighted average shares outstanding (WASO)
WASO takes into account: new stock issues, buy backs, stock split or reverse split etc.
I just learned this today while studying about the Stock Market so I could be wrong.
Hope that answer answered your question, if not let me know what was wrong since I'm curious too.
Is it possible to calulate cost of equity when EPS is negative?
excellent video ,explained very nicely
Hey Tim, I was going through the quarterly report of a company and found basic and diluted EPS to be the same. What does it infer? Does this mean no further plans or are they obliged to not dilute shares?
Brilliant video. Thanks Tim!!
Excellent. Thanks very much.
Thank you Tim. Love learning new things
I keep getting a negative number for eps is that right or possible? Should I invest in this?
Can a company take the money from its shareholders and instead of investing it into the company, buy back shares?? Maybe I am misunderstanding. This is discussed about 7 minutes in. If anyone understands this I would appreciate the clarification!
Love your videos but Goodwill although is an intangible, is not amortized but rather tested for impairment periodically.
Thanks. Like your explanation on eps.
This is incredible .Love it
Tim, this is lovely stuff
thanx a lot for the video! particularly how a company can corrupt the EPS ;(
Very nice
These videos are fantastic, thanks
Great
Thank you, Tim.
What does 10 cents/pence per share even mean tho? The shares are undervalued by 10p? Why do u need this for profitability if u can just look at their revenue? I want to know what the # itself is telling me.
***** it means that if the shares were sold in an open market then they the shares would achieve 10 pence per share. It has nothing to do with over or under valuation in its simplest form as shown in this video. Hope this helps.
moving to Cambridge now
Thanks for the Video :) Cheers !!
how come its problem if EPS rise up after buy back?
By simply buying back their own shares, management can boost EPS without necessarily becoming financially stronger. It can often be used to mask other problems within the company.
easy to understand. thanks a lot.
Thanks
10m/100m=10?
10/100 = 0,1£
0.1£ = 10Pence
1£=100 pence
i get EPS per year or per month
nice
Dude why you not super rich
Thanks~~~~
i can't find auxeiwf's comment, ya fake!
vyj